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  • Question

    We are a prime contractor assessing the type of contract a particular sub will be able to recieve, would we be able to issue them a cost type contract when their Accounting system was deemed adequate in 2007 by DCAA? Does DCAA accounting system approvals expire?


    Answer

    If requested by the buying activity, DCAA conducts preaward surveys and/or post award audits of a contractor’s accounting system to determine if it is acceptable for government purposes.  There is no set expiration period for either.  If DCAA receives another request shortly after conducting an audit or survey, they would make an assessment to determine if the previous review is still current or if another is needed.
     
    Regarding your question of “would we be able to issue them a cost type contract when their accounting system was deemed adequate in 2007 by DCAA”, the fact that the contractor’s accounting system has been deemed acceptable by DCAA in the past is a good “indication” (not a guarantee), that it may still be acceptable, but only if the contractor has continued to maintain it to the standards required.  DFARS 252.242-7006 provides the criteria of an acceptable accounting system.

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